France Telecom

Project Progress Report FRANCE TELECOM (ORANGE)”

Balaji Institute of Telecom & Management Contents Chapter 1 Introduction 1.1 Abstract 1.2 Objectives 1.3 Scope 1.4 Methodology Chapter 2 2.1History 2.2Management team 2.3Service offered 2.4Value chain Chapter 3 3.1 Analysis of Problem under Research Submitted by : 3.2 Alternative Solutions and their advantages & disadvantages 3.3 Proposed Solution Abhishek Bansal 3.4 Justification of the Solution Abhishek Bansal 3.5Operating data 3.5.1Market share Kumar Manish 3.5.2Statistical data - Orange 3.5.2.1 Market share Nishant Paliwal 3.5.2.2 Aggregate 3.5.2.3 Churn rate Rakhee Sonkhla 3.6 SWOT analysis Vandana Mishra Chapter 4 Findings Recommendations Conclusion Bitm | [Type the company address]

Project Progress Report FRANCE TELECOM (ORANGE)”

References & Bibliography

INTRODUCTION

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Project Progress Report FRANCE TELECOM (ORANGE)”

ABSTRACT France has the third largest telecoms market in Europe and the number one provider of broadband internet services in Europe and one of the world leaders in providing telecommunication services to multinational companies. Orange is the key brand of France telecom, one of the world’s leading telecommunication operator. Orange became the group’s single brand for internet, television and mobile services in the majority It is one of the largest in the world. It currently employs about 191,000 people (half outside of France) and has nearly 159 million customers worldwide (2007). It is the only telecom operator to have en international level innovation chain that is fully integrated, from R&D through to the release of new solutions on the market developed internally or through partnerships. Orange lab’s global network connects team involved in research, development, implementation of networks and marketing new convergent products.

OBJECTIVES OF THE STUDY

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Project Progress Report FRANCE TELECOM (ORANGE)”

The following are the objectives of studying the Reliance Communications 1 . To understand the functioning of france telecom– its policies, strategies , marketing practices and the technology it deploys.

corporate

2 . To analyse the telecom value chain of france telecom. Its products and services.

3 .To understand the france telecom market.

SCOPE OF THE STUDY

With the help of this study, we can understand the telecom business and present telecom scenario in France . This study will help us to understand the whole process of telecom service provider.

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Project Progress Report FRANCE TELECOM (ORANGE)”

METHODOLOGY

We searched all the information about france telecom from internet and magazines. Information has been collected from the sites as: www.google.com, www.wikipedia.com, www.orange.com http://www.francetelecom.com/

http://zenobank.com/index.php?symbol=FTE&page=quotesearch etc.

HISTORY Bitm | [Type the company address]

Project Progress Report FRANCE TELECOM (ORANGE)”

France télécom was Known as Direction Générale des Télécommunications upto 1988. Became autonomous in 1990. Head quarters being in PARIS. Brand ORANGE was created in 1994 for Hutchison Telecom's UK mobile phone network, which was acquired by France Telecom in August 2000. In August 2005, FT acquired a 77% ownership in the Spanish mobile phone company Amena, rebranding it Orange España. In December 2006, FT announced the acquisition of DIWAN and SILICOMP specialized on the Customer Critical Application (CCA) and Security for enterprises In November 2007, FT announced it had acquired a bid to secure 51% of Telkom Kenya's shares from the Government of Kenya, but will have to bring about 11% of shares back out onto the market three years following the deal. In June 2008, FT abandoned a bid for Swedish operator TeliaSonera after the two companies failed to agree terms.

SERVICES OFFERED France Télécom is a communications access provider offering customers access through multiple platforms. The four key platforms France Télécom operates are: Fixed line telephone, mainly in France and Poland. Bitm | [Type the company address]

Project Progress Report FRANCE TELECOM (ORANGE)”

Broadband access. Mobile phone telephony. Most recently, IPTV, though currently only in France and Spain, with MaLigne TV, now known as Orange TV.

France Télécom is present in the US through its Equant enterprise services and its venture capital arm, Innovacom as well as two R&D labs: one in Boston and the other in South San Francisco, California.

France Telecom's standard broadband offering is the Livebox, a combined modem and Wi-Fi router, with over 6 million units sold by August 2008. OpenTransit is France Télécom's backbone network. It covers Europe, the United States, Japan, Hong Kong, and loops back to Paris.

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Project Progress Report FRANCE TELECOM (ORANGE)”

TELECOM VALUE CHAIN

OEM 1: Stands for original equipment manufacturers level 1.It comprises all electronic chip making companies like Intel, Xilinks, Macroland, OEM 2: Stands for original equipment manufacturers level 2.It comprises basically the networking elements vendors like switches, routers and gateways. Companies like Cisco, Avaya, Alcatel, Lucent, Nortel are into this. Bitm | [Type the company address]

Project Progress Report FRANCE TELECOM (ORANGE)”

EV: Stands for equipment vendor. Companies like Nokia, Siemens, Erricson, Samsung, LG are into this business. NI: Stands for network integrator and the operation areas are to integrate the network elements to have a fault tolerant network infrastructure. NO: Stands for network operators. It the basic infrastructure company. Vodafone, Bharti Airtel. NTT DoCoMo are the few names. SP: Stands for service provider. The wireless or wireline service provider companies like Airtel, Hutch, Verizon, Cingular, Vodafone, BT, T Mobile KDDI, SK Telecom, China Mobile, China Unicom, China Netcom are the few names. MVNO: Stands for mobile virtual network operator. Depending upon the infrastructure they are owning they are further classified into Full or Partial MVNO. They do not own the infrastructure or the service rather they leverage upon their brand names. Virgin Atlantic is the MVNO. EU: Stands for the end user. The final entity who consumes the services. SI: Stands for the system integrator. They have product as well as domain knowledge. IBM, Accenture, Cap Gemini, EDS, CSC, Infosys, Wipro, TCS are the few names. ISV: Stands for independent software vendor. The are the original devloper of the software packages. Amdocs, SAP, Convergys, Subex, Lifetree, Xius, Bharti Telesoft are few names. ASP: Stands for application service provider. Organizations that host software applications on own servers within own facilities. Customer i.e. companies willing to outsource the IT requirements, access the application via private lines or the Internet. 3PAP: Stands for 3rd party application provider. There are value added reseller and do not have permanent contract with either service provider or the system integrator. CA: Stands for the content aggregator. They basically do the conversion work of information into required protocol suit. Reuters, New York Times are the few names. CP: Stands for content provider. They are the information supplier. Google, Indiatimes are to name a few.

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Project Progress Report FRANCE TELECOM (ORANGE)”

MARKET VALUE

Personal communication services ✔ Market penetration rate-- 88% ✔ Orange network coverage -- 99% ✔ Market share excluding MVNOs – 43.8% ✔ Number of customers (000s)---24226 ✔ Number of broadband customers (000s)-7407 Home communication services ✔ Number of fixed line customers (000s)—22962 ✔ Number of Internet customers (000s)—7917 ✔ Number of ADSL customers (000s)—7296 ✔ Voice market share—71.9% ✔ ADSL market share—49.4%

Sales (in m€)

2004

2005

2006

2007

Personal communication services

8 365

9773

9882

9998

Home communication services

18 002

17718

17657

17957

Gross operating Bitm | [Type the company address]

Project Progress Report FRANCE TELECOM (ORANGE)”

margin (in m€) Personal communication services

3 682

3 626

3 831

3 861

Home communication services

5 763

5 920

5 650

6 482

What is SIPOC?

SIPOC is an abbreviation of:

It provides a “template” for defining a process, before you begin to map, measure, or improve it.

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Project Progress Report FRANCE TELECOM (ORANGE)”

SIPOC Example:

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Project Progress Report FRANCE TELECOM (ORANGE)”

•

Suppliers: Significant internal/external suppliers to the process.

• Inputs: Significant inputs to the process. This would include things such as materials, forms, information, staff, etc. • Process: One block representing the entire process. • Outputs: Significant outputs to internal/external customers. This would be anything the business unit distributes. Frequency/timing is listed along with the output. Examples of outputs would be reports, ratings, products, documents, etc. •

Customers: Significant internal/external customers to the process. This would include anyone who receives outputs. It is important to note that the customer must get the output directly from the business unit and does not necessarily have to be a user of the output. If the output is received from a third party, they are not customer s. Examples of customers could be managers, CEOs, boards of directors or other departments.

Defining a Process with SIPOC Bitm | [Type the company address]

Project Progress Report FRANCE TELECOM (ORANGE)”

SIPOC Process Definition Template

Steps To Complete The SIPOC Diagram

SIPOC diagrams are very easy to complete. Here are the steps you should follow: 1. Create an area that will allow the team to post additions to the SIPOC diagram. This could be a transparancy (to be projected by an overhead) made of the provided template, flip charts with headings (S-I-P-O-C) written on each, or headings written on post-it notes posted to a wall. 2. Begin with the Process. Map it in four to five high level steps. 3. Identify the Outputs of this Process. 4. Identify the Customers that will receive the Outputs of this Process. 5. Identify the Inputs required for the Process to function properly. 6. Identify the Suppliers of the Inputs that are required by the Process. 7. Optional: Identify the preliminary requirements of the Customers. This will be verified during a later step of the Six Sigma measurement phase. 8. Discuss with Project Sponsor, Champion, and other involved stakeholders for verification.

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Project Progress Report FRANCE TELECOM (ORANGE)”

SWOT ANALYSIS Orange is a subsidiary of France Telecom and provider of mobile communications services. Orange holds strong market position in most of its markets. The company's strong position in the markets it serves provides it with a competitive advantage. However, intense competition from leading firms could erode the company's margins and reduce its profitability.

SWOT MATRIX

SWOT MATRIX FOR FRANCE TELECOM (ORANGE)

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Project Progress Report FRANCE TELECOM (ORANGE)”

BIBLIOGRAPHY •

www.orangebusiness.com/mnc • www.wikipedia.com • www.francetelecom.com • www.orange.com

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